BAKERY chain Greggs said fears over the health of the UK high street had been overdone yesterday as it vowed to accelerate store expansion on bumper annual figures.

Chief executive Ken McMeikan said it planned to open 90 new stores this year, most on the High Street, creating 800 jobs.

“The High Street is not dying, it is just changing,” he said. “There has been a natural correction with shoppers only coming if they think there is something to buy there. They come to us because they want our value sausage rolls and coffee. We are expanding on that demand.”

Greggs, which currently has over 1,500 stores, reported a 1 per cent rise in profits to £53million on sales up 6 per cent to £701million. It will pay out £5.9million to over 16,000 staff in the form of salary bonuses.

Greggs said fears over the health of the UK high street had been overdone

However its shares dipped 10p to 548p as same-store sales fell 1.8 per cent in the first 10 weeks of this year. Scotland, the North East and the Midlands have been worst hit but London continues to perform well.

“We have acted quickly to offer regional promotions in those regions most impacted such as two sausage rolls for £1,” McMeikan said.

“It is too early to say whether the sales fall is the start of a trend but we are on target for growth this year.”

He expects a lift in consumer sentiment in the summer from the Diamond Jubilee, Olympics and Euro 2012 with special ranges being planned. It is also opening three more “Greggs moment” coffee shops offering coffee and food at lower prices than rivals such as Starbucks.

“Our shops have a British feel such as bowler hat shaped lights. We expect to take market share,” he said.